U.S. PIRG - Taxhttp://www.uspirg.org/topics/tax
enA Terrible, Horrible, No Good, Very Bad Ideahttp://www.uspirg.org/blogs/blog/usp/terrible-horrible-no-good-very-bad-idea
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<a href="/blogs/usp/blog">Blog</a>
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<div class="field field-name-field-shared-post-date field-type-datetime field-label-hidden"><div class="field-items"><div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-02-26T00:00:00-05:00">Thursday, February 26, 2015</span></div></div></div><div class="field field-name-field-author-bio field-type-node-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/staff/usp/jaimie-woo">Jaimie Woo</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p><img src="http://farm3.staticflickr.com/2568/4105756012_db89e4be50.jpg" alt="" /></p>
<p>You'd think that common sense and strong opposition would be enough to kill a bad policy.</p>
<p>Not in Washington, D.C., apparently.</p>
<p>A little more than a year ago, I <a href="http://www.huffingtonpost.com/jaimie-woo/infrastructure-bill-is-ac_b_3989024.html" target="_hplink">highlighted the absurdity of using a corporate tax holiday to fund infrastructure</a>. Here's a quick refresher: Currently, large wealthy corporations avoid taxes by making it look as though their U.S. profits are generated offshore - costing Americans $90 billion each year in tax revenue.</p>
<p>Yet, a strangely popular proposal would give companies a temporary tax holiday, letting corporations bring back their money on paper, or "repatriate" it at an extremely low tax rate, thereby encouraging more corporate tax dodging in the future. The most ridiculous part? Some Members of Congress want to use this tax break that costs money to "pay for" badly needed infrastructure investments. How does that even make sense?</p>
<p>Recently, Sens. Barbara Boxer (D-CA) and Rand Paul (R-KY) jumped on the corporate tax holiday bandwagon. Their proposal would offer companies a one-time tax rate of 6.5% on profits they've booked offshore for tax purposes, compared to our statutory 35% tax rate. That would provide a powerful incentive for companies to continue avoiding their taxes by booking profits to sham subsidiaries in a tax haven that are often nothing more than a P.O. box.</p>
<p>We've conditioned these multinational corporations to expect another "tax holiday" down the road - and why shouldn't they? A similar tax holiday was enacted back in 2004, <a href="http://uspirg.org/sites/pirg/files/reports/Picking%20Up%20the%20Tab%20vUS_web.pdf" target="_hplink">followed by executive pay increases and over 20,000 jobs shed</a>. Now we're just rewarding the most aggressive corporate tax dodgers for their patience, to the detriment of the American taxpayers.</p>
<p>These proposals have faced outcry from a number of tax fairness and civil society groups, but we aren't the only voices on the table. The president notably called out corporate tax avoidance in his annual State of the Union, and top Republicans such as Sen. Inhofe and Sen. Hatch have deemed using a tax holiday to fund infrastructure a "bad policy." Hatch explicitly said, "<a href="http://thehill.com/policy/transportation/231141-paul-boxer-team-up-for-invest-in-transportation-act" target="_hplink">Saying you're going to use something that loses money to pay for anything is just wrong</a>."</p>
<p>President Obama's recently released budget calls for a 14% mandatory tax on all profits companies have booked offshore for tax purposes (known as a "deemed repatriation", in contrast to a voluntary "repatriation tax holiday"). While it is a huge improvement over a temporary tax holiday because it forces companies to pay U.S. taxes they owe on U.S. profits they've booked offshore, it still rewards large multinationals with armies of tax lawyers. It thereby gives them a massive discount at the expense of responsible small business owners and ordinary taxpayers. A company's success should be based on the quality of their products or services, not on how many tax accountants they can hire or how well they can game the system.</p>
<p>Our country badly needs investments in infrastructure - <a href="http://www.infrastructurereportcard.org/bridges/" target="_hplink">one in nine bridges are considered "structurally deficient,"</a> and access to public transit must keep up with changing travel trends as <a href="http://www.uspirg.org/sites/pirg/files/reports/US_Transp_trans_scrn.pdf" target="_hplink">Americans drive less</a>. But a corporate tax holiday that would cost taxpayers money down the road is not the way to do it.</p>
<p>Instead of using a tax break gimmick to pay for infrastructure, Congress should close the loopholes. Fortunately, there is a strong proposal on the table to do that: The Stop Tax Haven Abuse Act (S. 174, H.R. 297), recently introduced by Sen. Sheldon Whitehouse (D-RI) and Rep. Lloyd Doggett (D-TX). This bill would close the most egregious corporate tax loopholes and curb corporate inversions, a <a href="http://www.huffingtonpost.com/jaimie-woo/recent-inversion-wave-bri_b_5861028.html" target="_hplink">tactic companies have used to further lower their tax bill</a>.</p>
<p>Let's let common sense lead the national debate on tax reform. It's time for us to recognize that letting corporations game our tax code forces the rest of us to foot the bill. Let's implement the solutions that work.</p>
<p>--</p>
<p>You can also view this blog on Huffington Post <a href="http://www.huffingtonpost.com/jaimie-woo/a-terrible-horrible-no-go_b_6760236.html">here</a>. </p>
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<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a> </li>
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<a href="/topics/transportation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transportation</a> </li>
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Thu, 26 Feb 2015 15:53:44 +0000jwoo38971 at http://www.uspirg.orghttp://www.uspirg.org/blogs/blog/usp/terrible-horrible-no-good-very-bad-idea#commentsU.S. PIRG PRAISES BIPARTISAN BILL REINTRODUCTION PROHIBITING TAX WRITE-OFFS FOR WRONGDOINGhttp://www.uspirg.org/news/usp/us-pirg-praises-bipartisan-bill-reintroduction-prohibiting-tax-write-offs-wrongdoing
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For Immediate Release
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<span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-02-09T00:00:00-05:00">Monday, February 9, 2015</span>
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<div class="field field-name-field-author-bio field-type-node-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/staff/usp/jaimie-woo">Jaimie Woo</a></div><div class="field-item odd"><a href="/staff/usp/mario-k-salazar">Mario K. Salazar</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p>Washington, D.C. – Today, Senators Chuck Grassley (R-IA) and Jack Reed (D-RI) reintroduced <em>The Government Settlement Transparency and Reform Act</em>, which would restrict the ability for corporations to reap massive tax write-offs from payments made to settle allegations of misconduct or criminal wrongdoing. This comes on the heels of reports that Standard &amp; Poor’s will be able to claim a nearly $300 million tax deduction for its most recent settlement to addressing its allegedly flawed ratings practices and their role in the 2008 financial crisis. </p>
<p>This bipartisan effort will address the tax write-offs some corporations repeatedly receive for settlements they pay to resolve charges of harming the public. While federal law forbids companies from claiming public fines and statutory penalties as tax write-offs, settlement payments resulting from corporate negligence or malfeasance may be treated as business expenses and could thus be deducted from their taxes. </p>
<p>“These tax deductions result in the public paying the price for corporate misdeeds in the form of higher taxes, cuts to essential public programs, and higher government debt,” said <strong>Mario Salazar, Federal Legislative Director for U.S. PIRG</strong>. “We applaud the bipartisan effort to ensure that taxpayers do not have to pay twice for corporate misdeeds.”</p>
<p>“Preying on consumers or defrauding investors shouldn’t be classified as a business expense. If a company is paying thousands, millions, or even billions in fines, it shouldn’t get a tax break for those same misdeeds, it should be held accountable. The current tax loophole is the worst kind of special-interest tax giveaway because it is allowing bad actors to subsidize their misdeeds. The law needs to change to ensure the punishment fits the crime. Congress needs to close this settlement loophole,” said <strong>U.S. Senator Jack Reed</strong>. “Federal agencies can take a more active, effective role in protecting taxpayers. Several federal entities have included specific clauses in their settlement agreements to prohibit penalties associated with the settlement from being deducted as a business expense. I urge more agencies to follow suit and publicly disclose the true value of these agreements.”</p>
<p>“A penalty should be meaningful or it won’t have the deterrent effect it’s supposed to have,” <strong>U.S. Senator Chuck Grassley</strong> said. “Federal agencies too often don’t consider the tax implications, but you can be sure the company does. The government should understand this. The public should be accurately informed of the real penalty even when taxes are considered. This bill will ensure that government agencies think of the tax consequences in settlements going forward and increase transparency for the public.”</p>
<p>“This much-needed legislation would close this outrageous tax loophole and would require companies to pay their fair share when they do wrong,” said <strong>Mario Salazar</strong>.</p>
<p>You can read U.S. PIRG’s research report on the tax implications of legal settlements here: (<a href="http://www.uspirg.org/reports/usp/subsidizing-bad-behavior">link</a>).</p>
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<div class="field field-name-field-term-topics field-type-taxonomy-term-reference field-label-hidden">
<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a>
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<div class="field field-name-field-noderef-issues field-type-node-reference field-label-hidden">
<a href="/issues/usp/no-tax-deductions-wrongdoing">No Tax Deductions For Wrongdoing</a>
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Bill Holds Federal Agencies and Corporations Paying Out-of-Court Settlements Accountable
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U.S. PIRG
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<p>Senators Chuck Grassley (R-IA) and Jack Reed (D-RI) reintroduced <em>The Government Settlement Transparency and Reform Act</em>, which would restrict the ability for corporations to reap massive tax write-offs from payments made to settle allegations of misconduct or criminal wrongdoing. </p>
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Tue, 10 Feb 2015 03:31:59 +0000phineas38691 at http://www.uspirg.orghttp://www.uspirg.org/news/usp/us-pirg-praises-bipartisan-bill-reintroduction-prohibiting-tax-write-offs-wrongdoing#commentsHow Much of Its Record Settlement Will S&P Write Off at Tax Time?http://www.uspirg.org/media/usp/how-much-its-record-settlement-will-sp-write-tax-time
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US PIRG
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<a href="/issues/usp/no-tax-deductions-wrongdoing">No Tax Deductions For Wrongdoing</a>
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The Wall Street Journal
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<span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-02-04T00:00:00-05:00">Wednesday, February 4, 2015</span>
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<div class="field field-name-field-mediahit-author field-type-text field-label-hidden"><div class="field-items"><div class="field-item even">Timothy Martin</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p>First comes the settlement. Next comes the tax write-off?</p>
<p>Standard &amp; Poor’s Ratings Services on Tuesday<a href="http://www.wsj.com/articles/s-p-pact-hinged-on-trade-offs-with-justice-1422915828"> announced a record $1.5 billion payout</a> to resolve crisis-era lawsuits with the Justice Department, states and a pension fund over inflated residential mortgage deals. Collectively, the settlement total is 10 times larger than any other previously involving a credit-rating firm.</p>
<p>But how much of the unprecedented round of settlements could end up being written off?</p>
<p>Michelle Surka, a program associate with the nonpartisan consumer advocacy group U.S. Public Interest Research Group, said she thinks she has an answer based on an early analysis: about $290 million.</p>
<p>That’s about a $50 million break on state taxes but also the potential to write down $240 million of federal taxes owed in the more than dozen states involved in the settlement, Ms. Surka said.</p>
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<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a>
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Wed, 04 Feb 2015 16:14:15 +0000msurka@pirg.org38611 at http://www.uspirg.orghttp://www.uspirg.org/media/usp/how-much-its-record-settlement-will-sp-write-tax-time#commentsWhen Company Is Fined, Taxpayers Often Share Billhttp://www.uspirg.org/media/usp/when-company-fined-taxpayers-often-share-bill
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US PIRG
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<a href="/issues/usp/no-tax-deductions-wrongdoing">No Tax Deductions For Wrongdoing</a>
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The New York Times
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<span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-02-03T00:00:00-05:00">Tuesday, February 3, 2015</span>
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<div class="field field-name-field-mediahit-author field-type-text field-label-hidden"><div class="field-items"><div class="field-item even">Patricia Cohen</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p class="story-body-text story-content" data-para-count="456" data-total-count="1852">The rating agency Standard &amp; Poor’s, which was accused of helping to cause the financial crisis with its inflated assessments of <a title="More articles about mortgages." href="http://topics.nytimes.com/your-money/loans/mortgages/index.html?inline=nyt-classifier">mortgage</a> investments, is eligible to deduct half of the $1.37 billion settlement with state and federal prosecutors it agreed to this week, according to the <a href="http://www.uspirg.org/news/usp/bp-trial-decision-may-hinge-tax-deductibility">U.S. Public Interest Research Group</a>, a consumer-oriented nonprofit. The result would be a roughly $245 million reduction in its tax bill, the research group calculated.</p>
<p class="story-body-text story-content" data-para-count="292" data-total-count="2144">Which payments are deductible and which are not is often a mystery to the public. The overwhelming majority of cases, whether with a government agency or private individuals, are settled, enabling companies to hide just how much of the agreement’s sticker price is eligible for a write-off.</p>
<p id="story-continues-4" class="story-body-text story-content" data-para-count="398" data-total-count="2542">At least 80 percent of the more than $42 billion that BP has paid out because of the<a href="http://www.eoearth.org/view/article/161925/"> 2010 Deepwater Horizon rig explosion</a> that killed 11 people and spewed oil into the Gulf of Mexico qualifies for a tax deduction, according to <a href="http://www.uspirg.org/news/usp/bp-trial-decision-may-hinge-tax-deductibility">U.S. PIRG.</a> That has saved an estimated $10 billion to $14 billion for the company. The exact amount is uncertain because of the lack of transparency, the group complained.</p>
<p class="story-body-text story-content" data-para-count="212" data-total-count="2754">Brandon Garrett, a law professor at the University of Virginia and author of “Too Big to Jail,” said that BP was “asking taxpayers, in effect, to pay for the victim compensation fund it agreed to set up.”</p>
<p class="story-body-text story-content" data-para-count="84" data-total-count="2838">“Any future penalties should not permit massive hidden tax write-offs,” he said.</p>
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<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a>
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Wed, 04 Feb 2015 16:00:28 +0000msurka@pirg.org38606 at http://www.uspirg.orghttp://www.uspirg.org/media/usp/when-company-fined-taxpayers-often-share-bill#commentsObama Budget Closes Tax Loopholes, Cuts Wasteful Spending, but Falls Short of Ending Offshore Tax Dodginghttp://www.uspirg.org/news/usp/obama-budget-closes-tax-loopholes-cuts-wasteful-spending-falls-short-ending-offshore-tax
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For Immediate Release
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<span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-02-02T00:00:00-05:00">Monday, February 2, 2015</span>
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<div class="field field-name-field-author-bio field-type-node-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/staff/usp/jaimie-woo">Jaimie Woo</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
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<p class="MsoNormal"><em>Statement of U.S. PIRG Tax and Budget Advocate Jaimie Woo on President Obama’s 2016 Budget Proposal.</em></p>
<p class="MsoNormal">"President Obama’s budget deserves praise for closing egregious offshore tax loopholes and preventing companies with enough lawyers from using tax havens to get their tax bill down to zero. Unfortunately it fails to end the incentive for wealthy multinationals to take advantage of tax havens, and would fall short of putting an end to offshore tax dodging.</p>
<p class="MsoNormal">"For years, some of America’s largest, most profitable companies have used accounting gimmicks to make profits made in America appear on the books in offshore tax havens, where they pay little to no tax. Tax haven abusers benefit from our educated workforce, infrastructure, and security and should not force the rest of us to foot their tax bill.</p>
<p class="MsoNormal">"The President’s plan rightly shuts the door on some of the most egregious loopholes companies use to game the system, especially by including provisions to curb inversions and earnings stripping. But while the door might be shut, it’s not locked. The President’s proposed 19 percent minimum tax rate on the foreign profits of American companies is a step in the right direction, but it nonetheless would reward companies that use accounting tricks to book profits to tax havens a big discount on the proposed statutory rate they’d otherwise pay.</p>
<p class="MsoNormal">"With this powerful incentive, companies will continue to search for other loopholes to exploit. The door to gimmicky tax dodging will only be locked when companies can’t get a tax discount for shifting their profits offshore, a principle that should also apply to the profits companies currently have booked offshore.</p>
<p class="MsoNormal">"When it comes to making critical investments while cutting out the waste, the President’s plan makes the right choices. We applaud the President for recognizing the need to bring transportation system into the 21st century by fixing roads and bridges and investing in rail and transit. </p>
<p class="MsoNormal">"We also applaud the President for calling on cuts to wasteful spending and special interest handouts. Deficit reduction shouldn’t be hard, and the budget plan goes after waste that would make average taxpayers shake their heads in disbelief. For example, the President proposes to nix billions worth of agricultural subsidies that mostly benefit agribusiness giants that don’t need taxpayer handouts."</p>
<p class="MsoNormal">Click <a href="http://www.uspirg.org/sites/pirg/files/reports/USP%20TowardCommonGround.pdf">here</a> for a joint report by U.S. PIRG and the National Taxpayers Union, two groups with widely divergent views on tax and spending policy that came together to offer half a trillion dollars worth of deficit reduction recommendations.</p>
<p class="MsoNormal">Click <a href="http://uspirg.org/reports/usp/picking-tab-2014">here</a> for a study done by U.S. PIRG and Citizens for Tax Justice identifying the most aggressive corporate tax avoiders.</p>
<p class="MsoNormal">Click <a href="http://uspirg.org/reports/usp/picking-tab-2014">here</a> for a U.S. PIRG study on how offshore tax dodging hurts the average taxpayer.</p>
<p class="MsoNormal" align="center"># # #</p>
<p class="MsoNormal"><a href="http://www.uspirg.org/"><em>U.S. PIRG</em></a><em>, the federation of state Public Interest Research Groups, is a consumer group that stands up to powerful interests whenever they threaten our health and safety, our financial security, or our right to fully participate in our democratic society.</em> <em>If you wish to stop receiving U.S. PIRG media announcements, please reply to this email with "stop" in the subject line.</em></p>
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<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a> </div>
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<a href="/topics/transportation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transportation</a> </div>
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<a href="/issues/usp/close-corporate-tax-loopholes">Close Corporate Tax Loopholes</a>
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U.S. PIRG
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<p class="MsoNormal">"President Obama’s budget deserves praise for closing egregious offshore tax loopholes and preventing companies with enough lawyers from using tax havens to get their tax bill down to zero. Unfortunately it fails to end the incentive for wealthy multinationals to take advantage of tax havens, and would fall short of putting an end to offshore tax dodging.</p>
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Tue, 03 Feb 2015 16:42:40 +0000jwoo38396 at http://www.uspirg.orghttp://www.uspirg.org/news/usp/obama-budget-closes-tax-loopholes-cuts-wasteful-spending-falls-short-ending-offshore-tax#commentsReal Value of Deepwater Horizon Disaster Payments Depends on BP’s Tax Deductionshttp://www.uspirg.org/news/usp/real-value-deepwater-horizon-disaster-payments-depends-bp%E2%80%99s-tax-deductions
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For Immediate Release
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<span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-01-27T00:00:00-05:00">Tuesday, January 27, 2015</span>
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<div class="field field-name-field-author-bio field-type-node-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/staff/usp/michelle-surka">Michelle Surka</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p class="MsoNormal">As British Petroleum (BP) goes through the final phases of closing out its liabilities under the Clean Water Act, public understanding of the real value of the corporation’s payments to address the damage caused by the Deepwater Horizon disaster must include the tax deductions BP has taken and will likely take by writing the payments off as ordinary costs of doing business.</p>
<p class="MsoNormal">In 2010, BP claimed a <a href="http://blogs.wsj.com/deals/2010/07/27/the-next-bp-blow-up-a-99-billion-tax-credit/">$32.2 billion</a> charge for anticipated business losses in connection with the spill. This number includes $28 billion in cleanup costs and damages, $4 billion in Department of Justice criminal penalties, $535 million in payments to the SEC. BP is still anticipating several billion more in Clean Water Act penalties and other regulatory penalties, as well as an anticipated $18 billion more in damages</p>
<p class="MsoNormal">“There are billions of dollars on the line here,” said Michelle Surka, program associate with US Public Interest Research Group, “It should be completely explicit how much of its Deepwater Horizon payments BP can claim as a tax deductible business expense. If the public is ultimately footing the bill, the public should, at the very least, be informed.”</p>
<p class="MsoNormal">Over 80 percent of the total money BP has paid in connection with the Gulf oil spill so far qualifies for tax deductions. Only the Department of Justice’s $4 billion criminal fine and the SEC’s $535 million penalty were explicitly non-deductible by law. Any Clean Water Act payments will likely be non-deductible, because they will qualify as legal penalties, and the EPA, unlike many agencies, tends to be explicit that such payments be regarded as penalties.</p>
<p class="MsoNormal">Federal tax law forbids fines and penalties to the government from being treated as tax deductions, but settlements negotiated with agencies often fail to spell out whether a payment is technically a penalty, and even some penalties can be deducted if companies can argue that they are not meant to be punitive.</p>
<p class="MsoNormal">Even after the current Clean Water Act charges are resolved, BP also has to settle its liabilities through the Natural Resources Damage Assessment (NRDA) process, which will likely cost the company several billion more dollars. Unlike the EPA, payments made under the NRDA process do not follow EPA processes, and have in the past been tax deductible. Therefore, any payment made through the NRDA process will likely have a significantly lowered value after taxes.</p>
<p class="MsoNormal">In 2011, BP claimed from <a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/07/27/AR2010072704437.html">$10 billion</a> to <a href="http://www.foxnews.com/politics/2011/04/22/bp-cut-tax-13b-losses-spill/">$13 billion</a> in tax credits and therefore paid no federal taxes that year. Because corporations aren’t required to report the details of tax deductions they claim, and settlement agreements don’t need to specify which payments will qualify for tax deductions, the public can’t determine how much BP has already claimed and how much they might claim in future years. BP’s total expenditure on addressing the Gulf oil spill has already exceeded the initial charges claimed in 2010, and thus BP will likely be able to file for additional tax credits.</p>
<p class="MsoNormal"> </p>
<table class="MsoTableGrid" style="border: none;" border="1" cellspacing="0" cellpadding="0"><tbody><tr><td style="width: 134pt; border: 1pt solid windowtext; padding: 0in 5.4pt;" valign="top" width="179">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;"><strong>Type of Payment</strong></p>
</td>
<td style="width: 101.65pt; border-style: solid solid solid none; border-top-color: windowtext; border-right-color: windowtext; border-bottom-color: windowtext; border-top-width: 1pt; border-right-width: 1pt; border-bottom-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;"><strong>Tax Status</strong></p>
</td>
<td style="width: 101.65pt; border-style: solid solid solid none; border-top-color: windowtext; border-right-color: windowtext; border-bottom-color: windowtext; border-top-width: 1pt; border-right-width: 1pt; border-bottom-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;"><strong>Amount Paid</strong></p>
</td>
<td style="width: 101.65pt; border-top-style: solid; border-bottom-style: solid; border-top-color: windowtext; border-right-color: windowtext; border-bottom-color: windowtext; border-top-width: 1pt; border-right-width: 1pt; border-bottom-width: 1pt; border-left-style: none; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;"><strong>Potential Tax Deduction</strong></p>
</td>
</tr><tr><td style="width: 134pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; padding: 0in 5.4pt;" valign="top" width="179">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Damages paid to individuals and businesses</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Deductible</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">$13 billion</p>
</td>
<td style="width: 101.65pt; border-top-style: none; border-left-style: none; border-bottom-style: solid; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">$4.55 billion</p>
</td>
</tr><tr><td style="width: 134pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; padding: 0in 5.4pt;" valign="top" width="179">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Penalties to the government</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Non-deductible</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">$4.5 billion</p>
</td>
<td style="width: 101.65pt; border-top-style: none; border-left-style: none; border-bottom-style: solid; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">0</p>
</td>
</tr><tr><td style="width: 134pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; padding: 0in 5.4pt;" valign="top" width="179">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Cleanup Costs</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Deductible</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">$15 billion</p>
</td>
<td style="width: 101.65pt; border-top-style: none; border-left-style: none; border-bottom-style: solid; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">$5.25 billion</p>
</td>
</tr><tr><td style="width: 134pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; padding: 0in 5.4pt;" valign="top" width="179">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Anticipated future damages</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Deductible</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Estimated $18 billion</p>
</td>
<td style="width: 101.65pt; border-top-style: none; border-left-style: none; border-bottom-style: solid; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">$6.3 billion</p>
</td>
</tr><tr><td style="width: 134pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; padding: 0in 5.4pt;" valign="top" width="179">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Anticipated NRDA payments</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Deductible</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Estimated $1 billion</p>
</td>
<td style="width: 101.65pt; border-top-style: none; border-left-style: none; border-bottom-style: solid; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">$350 million</p>
</td>
</tr><tr><td style="width: 134pt; border-style: none solid solid; border-right-color: windowtext; border-bottom-color: windowtext; border-left-color: windowtext; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; padding: 0in 5.4pt;" valign="top" width="179">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Anticipated Clean Water Act penalties</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Non-deductible</p>
</td>
<td style="width: 101.65pt; border-style: none solid solid none; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">Maximum $13.7 billion</p>
</td>
<td style="width: 101.65pt; border-top-style: none; border-left-style: none; border-bottom-style: solid; border-bottom-color: windowtext; border-bottom-width: 1pt; border-right-color: windowtext; border-right-width: 1pt; padding: 0in 5.4pt;" valign="top" width="136">
<p class="MsoNormal" style="margin-bottom: 0.0001pt;">0</p>
</td>
</tr></tbody></table><p class="MsoNormal"> </p>
<p class="MsoNormal" style="margin-bottom: .0001pt;">You can also read U.S. PIRG’s report on tax write-offs in settlements here: <a href="http://www.uspirg.org/reports/usp/subsidizing-bad-behavior"><span style="mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: blue;">“Subsidizing Bad Behavior: How Corporate Legal Settlements for Harming the Public Become Lucrative Tax Write-Offs.</span></a><span style="text-decoration: underline;"><span style="mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: blue;"></span></span></p>
<p class="MsoNormal" style="margin-bottom: .0001pt;"> </p>
<p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center;" align="center"># # #</p>
<p class="MsoNormal" style="margin-bottom: .0001pt;"><a href="http://www.uspirg.org/"><em>U.S. PIRG</em></a><em>, the federation of state Public Interest Research Groups, is a consumer group that stands up to powerful interests whenever they threaten our health and safety, our financial security, or our right to fully participate in our democratic society.</em></p>
<p class="MsoNormal" style="margin-bottom: .0001pt;"> </p>
<p class="MsoNormal" style="margin-bottom: .0001pt;"><em>If you wish to stop receiving U.S. PIRG media announcements, please reply to this email with "stop" in the subject line.</em></p>
<p class="MsoNormal"> </p>
<p> </p>
<p class="MsoNormal"> </p>
</div>
<div class="field field-name-field-term-topics field-type-taxonomy-term-reference field-label-hidden">
<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a>
</div>
<div class="field field-name-field-noderef-issues field-type-node-reference field-label-hidden">
<a href="/issues/usp/no-tax-deductions-wrongdoing">No Tax Deductions For Wrongdoing</a>
</div>
<div class="field field-name-field-shared-subtitle field-type-text field-label-hidden">
Lion’s Share of Payments Are Subsidized by Taxpayers
</div>
<div class="field field-name-field-shared-organization field-type-text field-label-hidden">
US PIRG
</div>
Wed, 28 Jan 2015 15:58:42 +0000msurka@pirg.org38251 at http://www.uspirg.orghttp://www.uspirg.org/news/usp/real-value-deepwater-horizon-disaster-payments-depends-bp%E2%80%99s-tax-deductions#commentsNew year, fresh start: Congress’s Do’s and Don’tshttp://www.uspirg.org/blogs/blog/usp/new-year-fresh-start-congress%E2%80%99s-do%E2%80%99s-and-don%E2%80%99ts
<div class="field field-name-field-shared-blogref field-type-node-reference field-label-hidden">
<a href="/blogs/usp/blog">Blog</a>
</div>
<div class="field field-name-field-shared-post-date field-type-datetime field-label-hidden"><div class="field-items"><div class="field-item even"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-01-20T00:00:00-05:00">Tuesday, January 20, 2015</span></div></div></div><div class="field field-name-field-author-bio field-type-node-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/staff/usp/jaimie-woo">Jaimie Woo</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p class="MsoNormal">Another year has come and gone, and 2015 presents an opportunity to start fresh. With that in mind, it’s time for the newly minted 114th Congress to make the right choices for the public’s interest in its New Year’s resolutions, and making the tax code fairer is a good place to start.</p>
<p class="MsoNormal">“Tax reform.” Perhaps you hear these words and your eyes gloss over. It’s long been talked about, but hardly any progress made on the issue in nearly 30 years. However, both the president and Republican Congressional leaders have said they’re willing to make headway by reforming the corporate tax code. Here is a short list of Do’s and Don’ts that puts the public interest first and should form the basis of any agreement:</p>
<p class="MsoNormal"><strong>Do’s:</strong></p>
<p class="MsoNormal">- <strong>Close the loopholes that let wealthy multinational corporations get away with tax avoidance. </strong>Corporate tax haven abuse costs the federal government $90 billion in lost tax revenue every year. As a result, ordinary taxpayers have to pick up the tab through cuts to public priorities, higher taxes or more borrowing. In fact, to make up for that lost revenue, every small business in America would need to pay an additional $3,206 in federal taxes.</p>
<p class="MsoNormal">For example, take a loophole that tax lawyers have affectionately dubbed the “Double Irish” and the “Dutch Sandwich,” an egregious tax avoidance scheme used by Google and many other tech companies. For Google, this involves shifting profits to two Irish subsidiaries and one in Bermuda, a tax haven. Before going to Bermuda, the profits take a pit stop at a P.O. Box shell company in the Netherlands that has no employees. These gimmicks helped shrink Google’s tax bill by $3.1 billion from 2008 to 2010. Apple so deftly exploited similar loopholes that it was able to book $30 billion in profits to a phantom subsidiary that had no employees and was not considered a tax resident of any country in the world.</p>
<p class="MsoListParagraphCxSpMiddle">Loopholes allowing these types of tax avoidance schemes will likely be up for consideration, and in the worst-case scenario, could be made permanent. Congress must reject these proposals and finally close these <a href="http://www.huffingtonpost.com/jaimie-woo/its-not-over-yet_b_6034640.html">tax avoidance loopholes</a>.</p>
<p class="MsoListParagraphCxSpMiddle">- <strong>Pass meaningful legislation to stop corporate “inversions.” </strong>Over the past several months, well-known companies such as Burger King, Walgreens and Pfizer considered or followed through with the idea of changing the address of their corporate headquarters abroad on paper to avoid U.S. taxes -- a tax avoidance gimmick called an “inversion.” By buying out a smaller foreign company that is often based in a tax haven, companies that “invert” don't move abroad in any real sense, and continue to benefit from America's infrastructure, education system, security and large consumer market.</p>
<p class="MsoListParagraphCxSpLast">Last year, the Treasury Department issued a ruling that curbed some ways companies can invert, but it isn’t enough. The ball is in Congress’s court, and Congressional leaders have <a href="http://www.huffingtonpost.com/jaimie-woo/recent-inversion-wave-bri_b_5861028.html">proposed strong legislation</a> that should be passed, now. Unless meaningful legislation exists to restrict this practice, companies will continue to shift their tax burden to the public, whether through higher taxes, more debt, or cuts to essential public programs.</p>
<p class="MsoNormal"><strong>Don’ts: </strong></p>
<p class="MsoListParagraphCxSpFirst">- <strong>DO NOT adopt a “territorial” tax system, which incentivizes corporations to further shift profits abroad and avoid taxes on U.S. income. </strong>A “territorial” tax system is akin to a permanent “get out of taxes free” card. The U.S. already loses approximately $90 billion in federal tax revenues every year due to corporations booking their profits to offshore tax havens. These abusers benefit from our markets, infrastructure, workforce and security, but pay next to nothing for these benefits. Shifting to a territorial tax system would put small businesses and larger domestic companies at a competitive disadvantage.</p>
<p class="MsoListParagraphCxSpLast">Corporate lobbyists argue that, since other countries have adopted a territorial system, the U.S. should follow suit. A look at the UK should provide a cautionary tale. Despite rules intended to prevent tax haven abuse, Starbucks paid no corporate taxes in the UK from 2009 to 2012. Starbucks was able to shift profits abroad by paying premiums for coffee beans and roasting to offshore subsidiaries, and as a result were able to make it look like it was operating at a loss in the UK. Because the UK levies corporate tax on domestic profits, this income shifting eliminated Starbucks’ UK corporate tax bill. Other multinational companies, such as Amazon and Google, engage in similar practices.</p>
<p class="MsoListParagraph">- <strong>DO NOT pass a temporary corporate tax “repatriation” holiday. </strong>A tax holiday would reward the most aggressive tax dodgers by giving companies a <a href="http://www.huffingtonpost.com/jaimie-woo/infrastructure-bill-is-ac_b_3989024.html">massive tax discount</a> on the profits they’ve booked offshore for tax purposes. We’ve been down this road before and it wasn’t pretty. In 2011 a <a href="///C:\Users\Jaimie\Downloads\RepatriatingOffshoreFundsReportOct202011wExhibitsFINAL.pdf">Senate report</a> found that much of the profits some multinational corporations were supposedly holding offshore were actually sitting in U.S. bank accounts and other assets, undercutting the very premise that ‘bringing the money back’ would be a boon to the economy. Following 2004’s corporate tax holiday, many of the companies that touted these economic benefits used the extra cash to enrich shareholders or pay down corporate debt rather than to create jobs. The Senate also found that the 15 firms that repatriated the most money that year -- approximately $150 billion collectively -- actually shed nearly 21,000 jobs, while increasing executive pay and slightly decreasing investment in research and development.</p>
<p class="MsoNormal">The spotlight is on the Republican-controlled Congress -- and making these reforms a priority is a critical first step toward fixing our tax mess. The president has an opportunity to shed light on these issues tonight in his State of the Union address -- making the case for average Americans. While many special interests will try to hijack the congressional decision-making process, the public’s interest should rise above all others.</p>
<p class="MsoNormal">Check out this blog featured on Huffington Post: <a href="http://www.huffingtonpost.com/jaimie-woo/new-year-fresh-start-cong_b_6508420.html">http://www.huffingtonpost.com/jaimie-woo/new-year-fresh-start-cong_b_650...</a></p>
</div>
<ul class="field field-name-field-term-topics field-type-taxonomy-term-reference field-label-hidden">
<li class="field-item even">
<a href="/topics/budget" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Budget</a> </li>
<li class="field-item odd">
<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a> </li>
</ul>
Tue, 20 Jan 2015 16:49:02 +0000jwoo38206 at http://www.uspirg.orghttp://www.uspirg.org/blogs/blog/usp/new-year-fresh-start-congress%E2%80%99s-do%E2%80%99s-and-don%E2%80%99ts#commentsS&P Settlement Could Leave Taxpayers Partly Underwater Againhttp://www.uspirg.org/news/usp/sp-settlement-could-leave-taxpayers-partly-underwater-again
<div class="field field-name-field-newsrelease-status field-type-text field-label-hidden">
For Immediate Release
</div>
<div class="field field-name-field-shared-post-date field-type-datetime field-label-hidden">
<span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2015-01-16T00:00:00-05:00">Friday, January 16, 2015</span>
</div>
<div class="field field-name-field-author-bio field-type-node-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/staff/usp/michelle-surka">Michelle Surka</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p class="MsoNormal">Standard &amp; Poor’s (S&amp;P), the bond-rating agency whose past practices have been tied to the mortgage crisis, is in negotiations with the U.S. Justice Department to settle allegations of civil fraud with a payout of over $1 billion. Unless the Justice Department specifically forbids it, the deal could allow S&amp;P to claim the payment as a deductible business expense worth more than $350 million.</p>
<p class="MsoNormal">“These settlement agreements should strongly deter the kind of behavior that brought about the mortgage crisis,” said Michelle Surka, program associate with US Public Interest Research Group. “That’s lost if the agreements allow corporations to write off their misdeeds as just a cost of doing business.”</p>
<p class="MsoNormal">The Department of Justice complaint alleges that S&amp;P knowingly downplayed the risk on securities. Allegedly, S&amp;P would often rate subprime securities inaccurately, giving them high ratings when in reality they were composed of risky mortgages likely to default. This practice won the rating agency business from banks like Morgan Stanley and JP Morgan, which have also settled numerous allegations with the Justice Department in connection with the mortgage crisis.</p>
<p class="MsoNormal">“If the Justice Department’s settlement includes tax deductions, it would be a subprime deal for taxpayers. Americans have already paid the price for S&amp;P’s allegedly poor practices, thanks to the mortgage crisis and recession it helped bring about,” said Surka. “S&amp;P’s deceptive reporting practices led to millions of Americans going financially underwater. The Justice Department itself needs to be forthright about whether this deal can become a write off for S&amp;P.”</p>
<p class="MsoNormal">Every dollar in tax windfalls claimed by deducting settlement agreements must be shouldered by everyday taxpayers in the form of higher taxes, more federal debt, or cuts to public programs.</p>
<p class="MsoNormal">In previous cases, the Justice Department has usually failed to prevent banks from taking tax deductions for payments meant to settle allegations of fraud in connection with the mortgage crisis. In August 2014, $11 billion of Bank of America’s $16 billion settlement could be classified as an ordinary cost of doing business for tax purposes. </p>
<p class="MsoNormal">The Department of Justice has the power to explicitly deny corporations tax deductions for settlement payments. Specific language in the legal agreement, which other agencies like the Securities Exchange Commission and the Consumer Financial Protection Bureau use regularly in their deals with corporations, can prevent such deductions and save tax payers millions.</p>
<p class="MsoNormal">Typically, when a settlement agreement is likely to become a tax write off, the Department of Justice does not even divulge the real, after-tax value of the payment. </p>
<p class="MsoNormal">“The American public counts on S&amp;P reporting real numbers and accurately rating these financial instruments. If the company knowingly failed to do that, they should face consequences,” said Surka. “The Department of Justice should similarly report real, after-tax numbers when announcing its settlements.”</p>
<p class="MsoNormal">You can read U.S. PIRG’s research report on the tax implications of legal settlements, <a href="http://www.uspirg.org/reports/usp/subsidizing-bad-behavior">“Subsidizing Bad Behavior: How Corporate Legal Settlements for Harming the Public Become Lucrative Tax Write-Offs.</a></p>
<p class="MsoNormal">U.S. PIRG created a <a href="http://uspirg.org/resources/usp/no-tax-write-offs-wall-street-wrongdoing">fact sheet</a> on use of the settlement loophole by Wall Street financial firms.</p>
<p class="MsoNormal" align="center"># # #</p>
<p class="MsoNormal"><a href="http://www.uspirg.org/">U.S. PIRG</a><em>, the federation of state Public Interest Research Groups, is a consumer group that stands up to powerful interests whenever they threaten our health and safety, our financial security, or our right to fully participate in our democratic society.</em></p>
<p class="MsoNormal"> </p>
<p> </p>
<p class="MsoNormal"><em>If you wish to stop receiving U.S. PIRG media announcements, please reply to this email with "stop" in the subject line.</em></p>
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<div class="field field-name-field-term-topics field-type-taxonomy-term-reference field-label-hidden">
<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a>
</div>
<div class="field field-name-field-noderef-issues field-type-node-reference field-label-hidden">
<a href="/issues/usp/no-tax-deductions-wrongdoing">No Tax Deductions For Wrongdoing</a>
</div>
<div class="field field-name-field-shared-subtitle field-type-text field-label-hidden">
Could Claim Over $350 Million Tax Windfall for Justice Dept Settlement
</div>
<div class="field field-name-field-shared-organization field-type-text field-label-hidden">
US PIRG
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<p class="MsoNormal">Standard &amp; Poor’s (S&amp;P), the bond-rating agency whose past practices have been tied to the mortgage crisis, is in negotiations with the U.S. Justice Department to settle allegations of civil fraud with a payout of over $1 billion. Unless the Justice Department specifically forbids it, the deal could allow S&amp;P to claim the payment as a deductible business expense worth more than $350 million.</p>
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Fri, 16 Jan 2015 15:55:13 +0000msurka@pirg.org38186 at http://www.uspirg.orghttp://www.uspirg.org/news/usp/sp-settlement-could-leave-taxpayers-partly-underwater-again#commentsNew in the Huffington Post: 2014 Was the Year of Tax Write Offs for Corporate Crimeshttp://www.uspirg.org/news/usp/new-huffington-post-2014-was-year-tax-write-offs-corporate-crimes
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For Immediate Release
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<span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2014-12-30T00:00:00-05:00">Tuesday, December 30, 2014</span>
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<div class="field field-name-field-author-bio field-type-node-reference field-label-hidden"><div class="field-items"><div class="field-item even"><a href="/staff/usp/michelle-surka">Michelle Surka</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden">
<p><em>New column in The Huffington Post from Michelle Surka, U.S. Public Interest Research Group (U.S. PIRG) Program Associate, analyzing this year’s large number of allowed tax deductions for corporate wrongdoing.</em></p>
<p>“2014 was the year that nine-figure government settlement deals with corporations passed from shocking anomaly to normal event.</p>
<p>“The Department of Justice collected a record $25 billion in penalties and fines this year. Many of these out-of-court deals to resolve charges of corporate crime were with Wall Street banks atoning for the bad behaviors that precipitated the financial meltdown. Others were pharmaceutical companies accused of false marketing or other medical firms accused of bilking Medicare.</p>
<p>“These companies might seem to have no good reason to celebrate as this year's holiday festivities near, but most can find a silver lining. The huge settlement agreements typically came packaged up with nice holiday stocking stuffers for the corporations accused of committing crimes.</p>
<p>“Many of the largest settlements this year, addressing allegations of some of the most egregious crimes, have allowed companies to deduct their payments from taxes.”</p>
<p><strong>To read the full version, please visit: </strong><a href="http://www.huffingtonpost.com/michelle-surka/stocking-stuffers-for-cri_b_6390274.html"><strong>http://www.huffingtonpost.com/michelle-surka/stocking-stuffers-for-cri_b_6390274.html</strong></a><strong></strong></p>
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<p><strong>To see a larger infographic, visit</strong><strong> <a href="http://uspirg.org/resources/usp/tis-season-be-jolly-if-youre-corporation-thats-been-naughty">http://uspirg.org/resources/usp/tis-season-be-jolly-if-youre-corporation...</a></strong><strong></strong></p>
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<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a>
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<a href="/issues/usp/no-tax-deductions-wrongdoing">No Tax Deductions For Wrongdoing</a>
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US PIRG
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<p><em>New column in The Huffington Post from Michelle Surka, U.S. Public Interest Research Group (U.S. PIRG) Program Associate, analyzing this year’s large number of allowed tax deductions for corporate wrongdoing.</em> </p>
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Tue, 30 Dec 2014 19:46:48 +0000msurka@pirg.org37951 at http://www.uspirg.orghttp://www.uspirg.org/news/usp/new-huffington-post-2014-was-year-tax-write-offs-corporate-crimes#commentsTis the season to be jolly if you're a corporation that's been naughty.http://www.uspirg.org/resources/usp/tis-season-be-jolly-if-youre-corporation-thats-been-naughty
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<img typeof="foaf:Image" src="http://www.uspirg.org/sites/pirg/files/styles/rectangle_thumbnail/public/Cropped%20Infographic.jpg?itok=JM-j5AiW" width="100" height="125" />
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<a href="/topics/tax" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tax</a> </li>
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<p><img alt="1542 × 5708" class="media-image" height="2342" style="line-height: 20.0063037872314px;" width="633" typeof="foaf:Image" src="http://www.uspirg.org/sites/pirg/files/Holiday%20Full%20Length-final.jpeg" /></p>
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Mon, 29 Dec 2014 16:39:28 +0000mclark37936 at http://www.uspirg.orghttp://www.uspirg.org/resources/usp/tis-season-be-jolly-if-youre-corporation-thats-been-naughty#comments